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Arizona's Struggle for Sovereignty: The Consequences of Federal Mandates

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Arizona is awash in federal money. In fiscal year (FY) 2007, Arizona received close to $8.5 billion in federal funds. This money funds programs that most Arizonans are familiar with, such as Medicaid and the No Child Left Behind Act (NCLB). Even though the inflow of federal dollars appears attractive, there is a catch: As federal dollars flow in, state dollars are fixed to ever-growing demands connected to these programs. In 2000, the State of Arizona used general funds at close to $463 mil...